Bombay:
Automatic lubricants manufacturer Castrol India Limited (CIL) today said it will acquire a 7.09 percent stake in Ki Mobility Solutions, the digital subsidiary of TVS Automobile Solutions, with a planned investment of Rs 487.5 crore in an all-cash deal.
With this strategic investment, CIL aims to expand its service and maintenance presence for both internal combustion engines (ICE) and electric vehicles (EV) and leverage the digital and operational capabilities of myTVS, according to a release.
In addition, the partnership also provides opportunities for Castrol and KMS to partner and collaborate in selected markets outside India, it said.
This partnership will leverage each other’s strengths and expand the domestic automotive aftermarket ecosystem through “myTVS,” KMS’s digitally integrated multi-brand service platform for two- and four-wheelers, it added.
“CIL will acquire a 7.09 percent stake in KMS with a planned investment of up to Rs 487.5 crore,” the release said.
CIL’s existing service and maintenance presence includes the 220 passenger car service workshops in 110 cities across India and 42 two-wheeler express oil change outlets.
“Castrol’s nationwide presence in India, combined with the digital power of myTVS, will bring structure to the currently fragmented automotive service industry and also accelerate business growth for KMS.
“In addition, Castrol will explore business and technology partnerships with KMS to be ready for the transition to electric mobility,” said Sandeep Sangwan, Managing Director, CIL.
G Srinivasa Raghavan, Managing Director, ki Mobility Solutions, said: “Our partnership with Castrol will significantly improve the ownership experience for customers throughout the lifecycle of their vehicles. In addition, it offers numerous synergy options, such as scaling business offerings to electric vehicles and the potential to expand our footprint outside of India.”
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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